feasibility study-laundry services (1)

8/20/2019 Feasibility Study-Laundry Services (1)

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1 All Rights Reserved.| FSUU-Accontancy Program

2014FSUU-Accontancy Program

Aparece,Marjorielou B.

Cadorna,Vina O.

Casinillo,Kissey Jen T.Gumban,Christine Grace A.

Lorete,John Paul Niňo

R.Mosende,Nerissa G.

[COPYRIGHT PROTECTED DOCUMENT] All right reserved. Merely for reference purposes, no part of this publication may be reproduced or

copied and paste to other document same in nature .Feasibility Study Plagiarism is prohibited.


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FSUU-Accontancy Program | All Rights Reserved. 2

Father Saturnino Urios University

Accountancy Program

Feasibility Study

“Lovebada Bango Laundry Shop”

Prepared by:

Nerissa G. Mosende

Kissey Jen T. Casinillo

Christine Grace A. Gumban

John Paul Niňo R. Lorete

Marjorielou B. Aparece

Vina O. Cadorna

Adviser:

Mr. Daniel Nemeses C. Espina, CPA


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TABLE OF CONTENTS

I.

Introductiona)

Rationale 1

b)

Business Description 1

c)

Business Name 2

d)

Business Location 2

e)

Service Description 2

II.

Marketing Aspect

a)

Area Covered 4

b)

Target Market 5

c)

Competitors 7

d)

Market Need 8

e)

Demand Analysis 9

f)

Supply Analysis 9

g)

Laundry Services Offered 10

h)

Prices 11

i)

Income Projection 13

j)

Advertising and Promotion 14

k)

SWOT Analysis 15

III.

Technical Aspect

a)

Commercial Space for rent 17

b)

Space Layout 18

c)

Operating Procedure 20

d)

Filtration Process 23

e)

Operational Equipments 27

f)

Laundry Cleaning Products 32

g)

Supplies 35

h)

Costing 39

IV.

Management Aspect

a)

Form of Ownership 40

b)

Business Culture 43c)

Manpower Requirements 44

d)

Organizational Structure 45

e)

Job Description and Duties 45

f)

Segregation of Duties 46

g)

Management Style 47

h)

Motivating & Rewarding Employees 49


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V.

Financial Aspect

a)

Considerations 50

b)

Pre-Operating Expenses 51

c)

Projected Balance Sheet 52

d)

Projected Income Statement 53

e)

Projected Statement of Cash Flows 55

f)

Statements in Changes in Equity 56

g)

Return on Investment 56

h)

Payback Period 56

VI.

Socio Economic Aspect

a)

Contribution to the Economy 57

b)

Contribution to the Government 57

c)

Contribution to the Society 57

d)

Environmental Impact 58

VII.

Conclusion and Recommendation 59


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CHAPTER 1

INTRODUCTION

Rationale

The fast change of trend from individualized laundry to

commercial laundry services coincides with rapid technological

change as well as the fast, changing and modern lifestyle of

Filipinos.

Laundry business is an easy and convenient business to

start. It is not capital or management intensive. You can start

this business right from home and grow from there. It is a very

lucrative business, as not everyone that puts on clothes has thetime to do the laundry. Based on the survey conducted the reasons

why they go to the laundry shops instead of doing it to their

own are because of tight schedule especially those students who

have a lot of extracurricular activities in school, others says

they don’t like washing their clothes because it is just a waste

of time (laziness), and some boarding houses didn’t allowed

washing clothes in consideration to the consumption of water.

This is the reason why there is chance of making a lot of

money because this people will definitely seek your services.

Business Description

Butuan City as a highly urbanized city in the Philippines

emerged too many businesses nowadays. It can be seen that

numerous schools and establishment are spotted around the area

urging to look for convenience due to their busy time. And this

gives a positive outlook for some businessmen who were just

started in the industry to put their investment in certainbusinesses particularly the Laundry business in which the field

is not that much penetrated.


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Business Name

The right name can make your company the talk of the town

especially when it is unique and probably would catch their

attention. Therefore, the proposed name of our business is “Love

Vada Bango Laundry Shop” originated from the word “labada bango

with love” that means we will wash clothes with love, passion

and fragrance.

Fig. 1 Business Logo

Business Location

The proposed business location is located at Lopez Jaena

Extension, Barangay Tandang Sora, Butuan City.

This location composes of schools like FSUU, SJIT and BCC;

establishments; apartments and boarding houses.

Service Description

The Business concept of LOVEBADA BANGO is typically

homogeneous to those other existing Laundry shops in the city.

But certain things will make it stand and that includes its

quality services, professionalism of its personnel towards its

customers.


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Quality Services - The quality services really matters in

LOVEBADA BANGO Laundry. It is planned to provide services such

as washing, pressing, ironing and folding customer’s clothes and

garments. It will be using quality equipments and machineries

that could greatly help and make the business exist. It shall

offer affordable cleaning too, making sure that the output will

reach its quality standard

Professionalism towards customers - Personnel of the shop will

surely build professional customer relationship. Unlike the

other personnel/workers that may just think business is easy as

doing what is assigned to them and this normally getting

payments from customers after doing/giving what the latter

wants. More than that, it would be better to set your customersas part of the top priority. In addition, the team will take

care of each customer item with great respect since personal

things are engaged in the business.


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Chapter II

MARKETING ASPECT

The marketing aspect will serve as the basis of the

financial section through the projected demand. This includes

the area covered, target market, proposed location, competitors,

the demand and supply, demand and supply gap analysis, marketing

program and SWOT analysis.

Area Covered

This is to identify a point or an area of study. Geographic

target is in Butuan City primarily located at this Barangays

Sikatuna, Humabon and Tandang Sora as a primary market. This is

3.5% of the overall barangays total of 86 that composes the

city. This location composes of schools like FSUU, SJIT and BCC;establishments; apartments and boarding houses. Out from these

components we will determine the population of those living in

apartments and boarding houses where our target market is

situated.

Fig. 2 Area covered Brgy. Humabon

Fig. 3 Area covered Brgy. Sikatuna


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Fig. 4 Area covered Brgy. Tandang Sora

Area Covered

No. Apartments

and Boardinghouses

Total

Population(actual

data)

Brgy. Humabon 32 523

Brgy.

Sikatuna23

670

Brgy. Tandang

Sora72

1,706

Total 127 2,899

Fig. 5 Actual Population

Notes:

1.

The number of apartments and boarding houses were gathered

from the list of registered business establishments as of

June 2014 from City Hall Butuan City.

2.

The Population is based from actual data which is gathered

by the researchers while doing the survey and interview

with the Caretakers/Owners.

Target Market

Our target market will determine from those living in

apartments and boarding houses within the mentioned Barangays

such as:


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1.

Young professionals

2.

Students

3.

Family

This group of market will be described their need according to

their lifestyle considering a number of potential influences onbuying behavior including the attitudes, expectations and

activities of consumers.

In order to know the population demand for the proposed

laundry business for that area in Lopez Jaena Extension, we used

the “slovins” formula in determining the number of respondents

for the survey questionnaires. We use the actual number of

residents in apartments and boarding houses total 2,899(fig.5)

and the margin of error would be 10%. Margin of error denotes

the allowed probability of committing an error in selecting asmall representative of the population.

N = n / (1 + ne^2) Therefore:

N = Number of samples N = 2899

n = Total population (1+2899*.10*.10)

e = Margin of error

N = 96.67 round of to 97

Fig. 6 Questionnaire Distributions

Notes:

1.

The number of population is based on Actual.

2.

The ratio for distribution of respondents is based on the

Specific population in a barangay over total target

population and is multiplied to number of respondents.

Barangay Number of population Distribution Ratio total Respondents Distribution of respondents

brgy. Humabon 523 18.0% 97 17

Brgy. Sikatuna 670 23.1% 97 22

Brgy. Tandang Sora 1706 58.8% 97 57

2899 100.0% 97


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Fig. 7 Respondents Classification

Based on the survey, the graph shows that 78% are students,

21 % from working and others 1% coming from family section.

Competitors

We have gathered data of the list of the Laundry Shops

registered as of June 2014 in Butuan City. Below are the lists:

1.

ALL SEASON STEAM LAUNDRY – R. CALO ST. 5, Diego Silang

2. LIM’S HOUSE OF LINEN – 12, Bancasi

3. WASH ‘N DRI LAUNDRY SHOP – Dagohoy

4. KITZ N’ CHARLS LAUNDRY – MONTILLA BLVD. DOOR 1-CINDERELLA

ARCADE, Ong Yiu5.

VIA’S LAUNDRY SHOP – 084 MONTILLA BLVD., New Society

Village

6.

LAUNDRY KO - #162 J.C. AQUINO AVE., Bayanihan

7.

ECS LAUNDRY SHOPPE – 2, Libertad

8.

KRISSIE’S SO CLEAN, SO BRIGHT CLOTH CARE – J.C. AQUINO

AVE., Lapu Lapu

9.

R & D BUBBLE WASH AND LAUNDRY – PRINCESS HOME ARCADE,

Villa Kananga

10.

NRL LAUNDRY TIM – 327 CAPITOL DRIVE, Dagohoy

11.

KWIK KLEEN LAUNDRY SHOP – ZONE – 5 R CALO ST, Diego Silang

Respondents Classifications

students

working

other

78%

21%

1%


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Fig. 8 Competitors location

Notes:

Among those shops listed above, highlighted is the nearest

competitor which is 500 meters and 568.48 meters away from

the area where the target market resides.

The following competitors are not within our covered area

from the mentioned barangays.

Market Need

The survey says that the needs of the market are of the

following factors enumerated below. Therefore this would be our

basis to better achieve customer satisfaction and they will be

able to continue availing the service.

Quality of cleanliness

Price

Timeliness and customer service


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Fig. 9. Market Need

Fig. 10. Demand Analysis

Fig. 11. Supply Analysis

Demand Supply Demand and Supply Gap

7132 750 6382

Fig.12. Demand and Supply Gap Analysis

59%29%

12%

MARKET NEED

Quality of cleanlinessPrice

Timeliness

Area covered Total Actual Population

(a)

Percentage of those

who are willing

(b)

Total Population who

are willing to avail

(axb)

Estimated # of kls

minimum per week

(d)

projecte

deman

(in kilo

Brgy. Humabon 523 82% 429 3 1287

Brgy. Sikatuna 670 82% 549 3 1648

Brgy. Tandang Sora 1706 82% 1399 3 4197

Total 2899 2377 7132

Services

Working

Hours per

day

Estimated

Cycle Time per load

(hour)

No. of loads

allowed perday

(a)

Estimated

Capacity Per

Load

(b)X 4

machines

Load

Capacity per day

(axb=c)

Working

days

(d)

Loading

Capacity Per week

(cxd=e)Kilo

Machine Wash 8 hours 2 hours 4 30 kg 120 kg 6 days 720

Hand Wash 3 hours 1 5 kg 5 kg 6 days 30

Total No. of

Loads750


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Note:

1. Demand Analysis (Fig.10), projected demand is the estimated

kilo of clothes per week that needs to be catered by our

services.

2. Supply analysis (Fig.11), Loading Capacity per week is the

normal operating capacity that the Laundry shop can cater.

3.

As seen in Fig.12, there will be a gap of 6382 (7132-750)

kilos that will never be catered. Hence which is a good

thing, since the demand for our services is higher than

what we can give. Therefore the threats of competitors to

rise up in the same area (sharing of market) won’t

materially affect our sales projection.

Laundry Services Offered

The following are the list of the services to be offered based

on the needs of the market:

1.

Wash-Dry-Press

2.

Wash-Dry-Fold

3.

Hand washing

Fig. 13 Services to avail

19%

74%

7%

Services to Avail

Wash-dry-press

wash-dry-fold

Handwashing


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Fig. 14

Prices

Fig. 15 Prices

How much the market is willing to spend for laundry service?

Fig. 16 Wash-Dry-Fold

Once a week

78%

Twice a week19%

Thrice a week

3%

How often do you do laundry?

Special Items

(Per kilo)

Wash Dry Fold

(Per Kilo)

Wash Dry Press

(Per Kilo)

Handwashing

(Per kilo)

P 23.00 P 65.00 Jeans/Maong - P 30

Bed Sheet/Towel - P 45

Comforter - P 65

Wash-Dry-fold P 60.00

Without hanger P 65Minimum of 3 kg Wash-Dry-Press P 65.00

83%

17%

Wash-Dry-Fold

P23/kg

P25/kg


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Notes:

On the survey provided, 83% will go for cost of

23.00/min.3kls and only 17% will go for cost of25.00/min.3kls.

Fig. 17 Wash-Dry-Press

Note

On the survey provided, 72% will go for cost of65.00/min.3kls and only 28% for the 70.00/min.3kls.

This is in consideration as a student price.

Yes

38%

No

62%

Bring to Laundry Shop


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Fig. 18

Fig. 19

Based on this survey 38% of the market says yes that they

bring their clothes to the laundry shop, while the

remaining 62% says no. Therefore, out of the 38% that says

yes, 8% of them only bring 2 kilos and below, 21% brings 3

kilos, 34% brings 4 kilos and the remaining 37% brings 5

kilos and above.

Income Projection

Estimated Kg. of

Laundry per WeekRate per Kg.

Total Sales

per Week

No. of Weeks in

a Year

Total Sales in

Year 1

Wash-Dry-Fold 300 ₱23.00 6,900.00 52 ₱358,800.00

Wash-Dry-Press (with hanger) 72 70 5,040.00 52 262,080.00

Wash-Dry-Press (w/o hanger) 73 65 4,745.00 52 246,740.00

Hand Washing (Wash-Dry-Fold) 25 60 1,500.00 52 78,000.00

Hand Washing (Wash-Dry-Press) 25 65 1,625.00 52 84,500.00 Special Items

Jeans/Maong 85 30 2,550.00 52 132,600.00

Bed Sheet/Towel 85 45 3,825.00 52 198,900.00

Comforter 85 65 5,525.00 52 287,300.00

TOTAL REVENUE 750 ₱1,648,920.00

SERVICE REVENUE PROJECTION


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Advertising and Promotion

This refers to raising customer awareness of the services and

creating services loyalty.

1.

Leaflets and flyers – will be distributed upon the opening

of the shop so that the market will be able to be informed

that it is already available.

The leaflets and flyers will be personally done by the

owner of the shop which has a budgeted amount of P 3,000.00

Leaflets will include the following information:

- Services offered

- Price list

- Company address and contact number

- Business hours

- Business slogan

2. Tarpaulin – to be placed in front of the shop. The cost

would be P 2,500.00. It will include the following

information:

- Business name, address and contact number

- Business logo

- Business hours

- Business slogan

3.

Membership offering that will give customer discounts - to

maintain the loyalty of the customer we will offer

membership and there will be corresponding points to reach

so they can avail the discount.

4.

Bring a friend - a gift item will be given.

5. Pick Up and drop service – to increase more of the

willingness of the customer to avail of the laundry

service, we will offer pick up and drop service as it shows

also in the survey that 45% would like to have this kind of

extra service for the convenience of the customer.

To avail the discount

Laundry Requirement 30 kls/mo. 40 kls/mo. 50kls/mo

Discount 3% 4% 5%

Points


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Fig. 20

SWOT ANALYSIS

I.

Strengths

Using machines with quality and brand

High profitability because it is more accessible to

market

Quality output and faster service

The location is on the main city nearest to the

boarding houses, apartments and schools

Location is just a walking distance

Prices are relative, competitive and accords to what

the customers want

Does not need a large amount of capital

Promotion strategies – social networking sites is very

accessible as well

Accessibility of the location

II. Weaknesses

Lack of experience as this will be the first time to

conquer the market in the said location


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As the machines with brand and quality is expensive,

maintenance will be quite expensive as well

III. Opportunities

Continuous development of the city with having new

establishments for residential (apartments and

boarding houses)

Students, working professionals having lack of time in

doing their own laundry

Only two competitors nearest which is 500 meters and

568.48 meters away from location

IV.

Threats

Price variations

Future competition


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Chapter III

TECHNICAL ASPECT

This chapter provides information that includes the

structures and the floor plan, operating procedures/processes

that are essential to the overall operation of the business,

proposed equipment, machineries and supplies together with their

descriptions and specifications.

Commercial Space for Rent

The space will undergo some sort of renovation just to

maximize the space intended for the business since the space is

not that large enough to settle all the equipments or other

furniture. The rent will be 2 months deposit and one monthadvance total 30,000.00 on first month and cost 10,000.00 pesos

on a monthly basis onward provided by a lease contract for

minimum of 1 year and renewable. Below shows the innovation cost

for the space rented.

Description of JobsEstimated

Cost

Fabrication and Installation of the

following:

Cabinets 5,500.00

Counter tables 6,100.00

Divisions 5,200.00

Ironing Board 4,000.00

Total Cost for Furnitures and

Fixtures20,800.00

Leasehold Improvements

Electrical works for the lights and

connections to the machines including

the materials and labor

3,000.00

Painting including materials and

labor 3,500.00

Plumbing works for the installation

of water connections to the machines

and drainage system (septic tank)

12,000.00

TOTAL 18,500.00

Fig. 21


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Space Lay out

Fig. 22

The floor plan was designed intended to facilitate the work

flow and show how the space looks like.


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Image of the Actual Space

Fig. 23


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Operating Procedure

Fig 24. Operating Procedure

The above chart shows the laundry process. Each process is

explained as below:

1.

Tagging - the clothes are firstly tagged with a specific

number, mentioned in the invoice given to customers. This

procedure is used for identification of clothes once ready

for collection for customers.

2. Sorting - After tagging the clothes are arranged in

different sets. Some people will sort by color. Other sort

by fabric type.

3. Pre-treatment of clothes – soaking in hot water.

4.

Washing - The clothes are washed in washing machine using

detergent washing powder and or bleach on white.

5. Drying - The clothes washed are transferred to dryers.

(Note: one of the machine are automatic dry)

6.

Packing - Once pressed, the clothes are properly hanged and

covered in the plastic wrap and then tagged so that it can

be easily identified.


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Receiving and Tagging

1. Note the time that the items received.

2. Check the item against the laundry list.

-

Make sure the item received matched the item listed on

the laundry list.3.

Tag each laundry items.

4.

Check for damage and lost and found items.

5.

Fill out in the separate logbook for lost and found items.

-

Record the time, date, name, description of the item

6.

Place the item in a plastic bag and surrender it to the

supervisor.

7.

Record the laundry items according to company procedures.

-

Record the date, name of customer, time received, name of

the attendant, signature and remarks.

8.

Sort each item according to weight and color (heavy, white,colored and damaged)

- Put damaged item to separate basket

9. Prioritize express items.

Wash Dry Fold per 10 kilo wash load

Thin Garments including clothing, bed sheets, curtains, and

towels

1. 30 minutes washing time

2. 4 scoops of detergent soap and 1 cup of fabric

softener

3. 25 to 30 minutes drying time

4.

Quality checking of clothes

5. Approximately 30 mins for folding

Thick Garments such as blankets and comforters

1.

30 minutes washing time2.

4 scoops of detergent soap and 1 cup of fabric

softener

3.

30 minutes drying time

4.

Quality checking of clothes

5.

Approximately 1 hour for folding


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Pressing Service

1. Inspection of clothes for pressing if the fabric

allows pressing and specific temperature requirements

2. Segregation of clothes according to size and

temperature requirement for pressing.

3.

Pressing of clothes requiring high temperature and

folding.

4.

Pressing of clothes requiring medium to low heat

temperature and folding.

5.

Segregation of clothes according to tag,

identifications and tagging for pick up

Hand Washing Process

1.

Clothes are inspected for washing requirement symbol.

2.

Clothes are initially soaked and rinse in lukewarm

water to loosen up the fabric for easy cleaning.

3. Clothes are soaked in lukewarm water with detergent

for about 8 minutes

4. Clothes are hand washed with bar soap and bleach (if

needed)

5. Clothes are soaked and rinse in cold water for rinsing

twice

6.

On the third rinsing procedure, rinsing procedure,clothes would be soaked and rinse in cold water with

fabric conditioner

7. Clothes are to be tumble dried in minimum time

according to fabric requirement

8.

Clothes are segregated and folded according to tag

identification

9. Clothes are bagged for pick up

Removing Stain

1. Prepare the necessary materials.

(gloves,cotton cloth, stain remover, laundry basket)

2. Lay the cotton cloth on your work area - cotton cloth

absorbs the stain while it is being removed.

3.

Turn the garments to its wrong side.

4.

Lay the stained part of the garment on the cotton cloth.


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5.

Wear protective equipment - Gloves protect your hands from

harsh effect of chemicals.

6.

Apply stain remover and gently scrub the area. Apply more

stain remover as necessary for stubborn stains; soak the

garments for 5-15 mins.

7.

Check if the stain has been removed.

8. Place the garment in a basket for laundry.

Notes:

1. First come first serve basis for laundry service.

2. If in case customer will request for quick delivery

additional charge of P 5.00.

Filtration Process – Environmental Impact

Step 1:

The higher hole was inserted on

the side of the washing waste

pipe, and the lower hole is for

the pipe to the canal.

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Step 2:

Vermin proof lid on the grey

water filter box. It comes with

a secure lid, so that will also

deter vermin.

Step 3:

Larger filter stones layer the

base of the black box.

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Step 4:

Smaller filter stones were laid

on top of the larger stone.

Step 5:

A couple of layers of shade

cloth to hold the sand.

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Step 6:

A layer of clean sand.

Step 7:

Test run

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Operational Equipments

Electrolux EWT904 - 9kg Top

Load Washing Machine with

T-Drive Washing Technology

Price: 22,395.00

Quantity: 2

Life Expectancy: 5 years

Body Type: Top-load washer

Total Capacity Washing

Capacity: 9kg

Number of Wash Cycles: 11

Spin Speed: 850 rpm

Dimensions: 67 x 107 x 68

cm

Drum and Interior Finish:

Stainless steel

Eco-friendly

Certification(s) 3

ticks(WELS)

Eco-friendly Feature(s):

Load Selector - Low -

Middle - High, Deep / Eco

Rinse

Material(s): Zinc-coatedBody

Screen Technology LED

light Indicator and time

display, Electronic Control

Wash Cycle Modes: Regular

Wash, Fast Wash, Colour,

Delicates, Heavy Soil,

Woollens

Control Panel Programmes

in single knob controlTimers: Soak and delay end

function

Dispensers: Detergent,

Bleach dispenser drawer

Center Fabric Softener

Holder

Supplier:

Electrolux

located atthe

Robinsons

Appliances


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Health Features: T-DRIVE

washing technology: 35%

cleaner washing

performance: Anti-residue

system

Water Efficiency: 3

ticks(WELS) Water

consumption: 8.80 L /kg

Regular wash

Noise Reduction: Stabilised

Belt-driven System

Indicators: LED Remaining

Time Display

Languages Supported

(OSD/Menu) English

Quick Menu Options Soaking

Function- 45,30,15 min

Rinse Function - Extra,

Deep,Eco,Fast

Power Supply: 220-240 V/50

Hz

Warranty: 2 years warranty

WM-2011/007953

7kg Sensor Dry Dryer withIron Aid - EDS7051

Price: 18,995.00

Quantity: 2


Body Type: Front-load Dryer

Total Capacity Drying

Capacity: 7kg

Number of Wash Cycles: 6

Spin Speed: No

Stackable: YesDimensions: 600 x 845 x 620

Drum and Interior Finish:

Stainless Steel

Energy Consumption: Drying

Per Cycle: 4.46 kWh

Eco-friendly


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Certification(s):ENERGY

EFFICIENCY (MELS) - 1 ticks

Eco-friendly Feature(s):

Auto Sensing, Iron-aid

function, Reverse Tumbling

Technology

Material(s): Galvanised

Zinc-coated Body

Screen Technology: LCD

light Indicator and

Electronic Control

Wash Cycle Modes:

Normal/Delicate/Airing/90mi

n/60min/30min

Height with Lid

Open:Electronic Control

Panel

Timers: 3/6/9 hours

Safety Features :

Safety Cut-off, Door lock

Indicators: Drying /

Airing / End

Languages Supported

(OSD/Menu): English

Power Supply: 220-240 V/50Hz

Packaging Weight: 32kg

Included Accessories:

Venting kit

Warranty: 2 years warranty


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4 CYLINDER 5 SPEED SUZUKI VAN TYPE WITH

AIRCON - Used

Php 95,000.00


Water Tank

Storage in case there will be

water disruption.

Php 10,000.00

2in1,blower and suction- 1/2hp,

200watts,20" x 20"

Exhaust Fan

Php 6,000.00

1 pc. Of 120kls. Weighing Scale

Php 3,500.00


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1 pc. Of Calculator

Php 200.00

Water Hose 50ft

Php 1,500.00

2 pcs. Of Steam Flat Iron

Php 1,095.00 each

1 set of Dataworx Budget

Computer Package (Black)

Php 11,879.50


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1 pc. of Plastic Container (for

filtration process)

Php 739.75

1 sq.meter of Black Shade Cloth

Php 100.00

Laundry Cleaning Products

We choose to have a one supplier for our supplies to be use

for the laundry process.

Name of the Supplier PowerClean Chemicals

Branch KM 5 Buhangin Highway Corner

Pag-asa St. Davao City

Access Order Online

Website http://www.powerclean.com.ph/

Alternative Supplier Villa Fidelina

Address Ochoa Ave.cor.LauravilleSubd.,Brgy.Limaha, Butuan City

Access Direct Buying


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Supreme Power Detergent

Description:

High Density Power Detergent

with supreme performance, 100%

biodegradable active, anti-

bacterial and optical

brightener, no odor soaking,

and no chalk. Ideal for

Handwash and machine wash.

12 Sacks – 25 kg each

Life Expectancy : 1 year

Price: P 19,500.00 @ 1,625 per

sack

Fabric Softener

Description:

A concentrated liquid fabric

softener that soften and leaves

a fresh scent on fabrics,

soluble in cold and hot water.

With various scents suited to

different personalities.

40 Gallons


Price : P 7,600.00 @ 190 pergallon

Liquid Bleach

Description:

Mild, safe chlorine bleach for

all purpose cleaning anddisinfection. Contains sodium

hypochlorite and releases 5-7 %

available chlorine that will

react with your fabric stain.

Effective at low temperature,

fast action and removes


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stubborn stain.

40 Gallons


Price : P 3,280.00 @ 82 per

gallon

Paint, Oil and Grease Remover

Description:

Is a fast acting liquid spot

cleaner especially formulated

to remove paint, oil and grease

on fabric and other surfaces

without affecting color and

quality. This can also remove

unwanted bubble gum on hard

surfaces.

10 gallons


Price : P 5,000.00 @ 500 per

gallon

Fabric Freshener

Description:

Is a water based scent

especially formulated to

eliminate undesirable odors and

enhance the freshness of newlywashed clothes. It comes in

pleasant smelling dawny,

comfort fashion and lavender

scent

40 Gallons


Price : P 10,000.00 @ 250 per

gallon


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Liquid Detergent

Description:

A concentrated liquid solution

which has mild surfactant

system effective for color fast

Supplies

2 pairs of Rubber Gloves


Php 199.00 @ 99.50 each

10 pcs. Of Laundry Basket

Life Expectancy:1 year

Php 2,000.00 @ 200 each

3 pcs. Of Dipper


Php 90.00 @ 30.00 each


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144 pcs x 10. Plastic Hangers

Life Expectancy: 1 yr

Php 4,000.00 @ 400.00 for 144

Face Mask Ear Loop

(50 pcs/box)

Disposable item

Php 100.00

Big Plastic Basin - 5

Life Expectancy: 1 yr

Php 2,250.00 @ 450.00 each

50 rolls of Tagging Paper

Roll

Life Expectancy: 1 year

Php 9,000.00 @ 180.00 each


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Ball Pens


Php 60.00 @ 5.00 each

40 pcs. Of Scotch Tape


Php 500.00 @12.50each

Record Book- 300 Pages


Php 100.00

10 pcs. For 500 sheets of

Order Slip


Php 1,687.50 @337.50 each


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10 pcs. For 500 sheets of

Delivery Slip


Php 2,600.00

Plastics Units Sando

Bags

Units

16x24 200 pcs. 310.00 Large 100 pcs. 140.00

20x30 100 pcs. 165.00 Extra

Large

100 pcs. 185.00

20x40 100 pcs. 285.00 Jumbo 100 pcs. 330.00

24x36 100 pcs. 390.00

24x60 100 pcs. 620.001 year 1,770*2 3,540.00 655*2 1,310.00


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Cost of Services

( WDF 8kg,WDP 2kg)*a TOTAL COST Wash-dry-fold Wash-dry-press

8kg 2kg

Php 16.25 Php 13.00 Php 3.25

Php 11.88 Php 9.50 Php 2.38

Php 15.63 Php 12.50 Php 3.13

Php 5.13 Php 4.10 Php 1.03

Php 4.86 Php 2.54 Php 2.03 Php 0.51

Php 48.88 Php 39.10 Php 9.78

DM Cost per Unit*f Php 4.89 Php 4.89

Php 76.57 Php 76.57

Php 89.33 Php 89.33

Php 165.90 Php 76.57 Php 89.33

DL Cost per Unit*i Php 9.57 Php 11.17

Rate

Php 7.9734 Php 2.39 Php 1.91 Php 0.48Php 7.9734 Php 2.39 Php 1.91 Php 0.48

Php 7.9734 Php 17.78 Php 14.22 Php 3.56

Php 7.9734 Php 17.78 Php 14.22 Php 3.56

Php 7.9734 Php 2.51 Php 2.51

Php 40.35 Php 32.28 Php 10.58

Overhead Cost per unit Php 4.03 Php 1.32

Php 255.12 Php 147.95 Php 109.68

Php 18.49 Php 54.84

Direct Material

Detergent (250grams)*b

FOR WASHING MACHINE PROCESS

COSTING PER 10 kg Process

Direct Labor

Wash-dry-fold DL allocation *h

Wash-dry-press DL allocation*h

Total Direct Labor Cost

Fabric Softener (1 cup)*c

Fabric Freshener (1 cup)*d

Liquid Bleach( 1 cup)*e

Water (522L)*g

Total Direct Material Cost

Overhead-Electricity Consumption

Machine Washing(30min)

Tumble Dryer(30 min)

Machine 1 (.600kwh)*jMachine 2 (.600kwh)*j

Total Cost per Unit

Dryer1 (4.46kwh)*k

Dryer2 (4.46kwh)*k

Total Overhead Cost

Pressing (15 min)

Flat Iron (1.258kwh)*l

Total Cost of Process

Total Cost

8.13

5.94

7.81

2.56

4.86 1.90

26.34

5.27

252.24

total Direct Labor 252.24

Direct Labor unit cost 50.45

7.9734 8.89

8.89

1.78

287.47

Total Cost per unit 57.49

COSTING

Tumble Dryer(15 min)

Dryer1 (4.46kwh)*t

Total Overhead

Total Handwashing Cost

Cost per unit

Water (391.5L)*q

Total Direct Material

DM Cost per Unit*r

Direct Labor

Handwash-dry-fold *s

Overhead

HANDWASHING

Direct Material

Detergent (125grams)*m

Fabric Softener (1/2cup)*n

Fabric Freshener (1/2 cup)*o

Liquid Bleach( 1/2cup)*p


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CHAPTER IV

MANAGEMENT ASPECT

This chapter provides information about the management aspect

of the business. Basically, it shows the form of ownership which

the business have. This includes how business will be managed,

the control and supervision matters and even the start-up cost

of the business. It will also provide you with information

about the basic requirements and procedures in registering the

business and the government agencies that the business is

related to.

The management aspect will determine the successful

realization of the business. That’s why the study of the

officers, key personnel and manpower requirements will be very

important matter in this chapter. Business culture whichincludes the operating schedule and the day to day monitoring

will also be part of this chapter.

Form of Ownership

I.

The business will be sole proprietorship.

- Manage

- Control

- Supervise

- Start Up cost

A sole proprietorship is chosen since it is one of

the least expensive business structures to begin.

Only one person owns a sole proprietorship business,

the legal requirements involve simply registering a

business name and obtaining any relevant licenses or

permits that relate to the specific type of

business.

Many sole proprietorship businesses have very lowstart-up costs as compared with other types of

business structures. The start-up investment

typically includes the basic costs for equipment,

marketing and office utilities. However, the amount

of the start-up costs may vary, depending on the

specific type of business.


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II.

Registration

Essentially, a sole proprietor business legally

comes into existence when the business owner

registers the business name and obtains any relevant

business licenses.

Government agencies for registration

Department of Trade and Industry

Local Government Units where your business is

located:

a.

Barangay

b.

Mayor’s Office

Bureau of Internal Revenue

Legally Required Registration of Employee BenefitsEmployers are legally required to provide certain

benefits for employees. Employee benefits play an

important role in the lives of employees as well

as their families. For that reason, the benefits

you offer can be a deciding factor for a

potential employee’s decision to work at your

business.

Employee’s registration to the following:

a.

SSS

b. PhilHealth

c. Pag-ibig – HDMF

Basic requirements and procedure in registering a Sole

Proprietor Business

1.

Register a business name at DTI

1)

Come up with three business names

2)

Search in the DTI’s website if there is anexisting name similar to yours

3)

If your business name is available, fill up

business name (BN) Application Form

4)

Submit your completed BN application form to

DTI’s offices/branch


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5)

Wait for your DTI Certificate of

Registration

2.

Registration with Barangay

1)

Go to the barangay where your business is

located to secure and fill-up application

form

2) Submit your completed application form

together with the following:

Certificate of Business Registration

from DTI

Two valid IDs

Proof of Address such as Contract of

Lease

3)

Claim Barangay Certificate of Business

Registration3.

Register your business in the Mayor’s Office

1)

Go to the municipal office where your

business is located to secure and fill-up

application form

2) Submit your completed application form

together with the following


from DTI

Barangay Clearance Certificate

Two valid ID Proof of Address such as Contract of

Lease

4.

Register in the Bureau of Internal Revenue (BIR)

1)

Go to Regional District Office where your

business is located

2)

Fill-up the BIR Form 1901- Application for

Registration (for Sole Proprietor)

3)

Submit completed registration form together

with the following


from DTI

Barangay Clearance Certificate

Mayor’s Business Permit

Proof of Address such as Contract of

Lease


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Valid ID

4)

Pay the registration form (BIR form 0605)

5)

Register your book of accounts and

receipts/invoices

6)

Claim your Certificate of Registration (BIR

Form 2303)

Business Permit and Licenses Amount of

Registration

Registration with DTI 215.00

Registration with Barangay 100.00

Business Permit in Mayor's Office 5,027.00

Registration in BIR 500.00

Total 5,842.00

Business Culture

I. Operating hours from 9:00 am to 6:00 pm – Mondays to

Saturdays

Break time: 12:00 to 1:00 PM

II.

Day to day monitoring

The Inspector will monitor the employees’ attitude and

performances, the laundry process, the consistency and on-

going coaching and giving instructions to them.

- Monitoring of sales

- Inventory

- Delivery and Pick-up

The pick-up and delivery will start at 9:00 am from

Monday to Saturday. Our customers will contact us, since we

are giving leaflets to them and posting tarpaulins in the

area. The customer and the counter clerk will set-up the

date of pick-up of laundry through telephone or cellphone,prior to the date of pick-up in order to manage the route

in one way we can reduce the cost of gasoline. However, we

will charge ₱5.00 for every pick-up and delivery.

III. Customer’s Account using Microsoft Excel


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The customer’s account will be the basis to track

their location during the pick-up and delivery service. It

contains the customer’s name, address, contact number,

number of returned garments with the payments and other

information using the Microsoft Excel as our system. It is

necessary to have a better customer communication such as,

scheduling or canceling of bookings, automatic SMS,

information about their account balances without invoice

tickets during delivery and optimized customer search.

Manpower requirements

I. Physical Requirements:

- Age must be 18-40 years old

- Workers without bending, crouching or walking restrictions.

- no skin allergies

II. Skills, Interests and Qualities

- Must be graduate of Housekeeping NC II

- practical skills to operate and adjust machinery

- good attention to detail

- willingness to do repetitive work

- the ability to work methodically and follow instructions

- willingness to work flexibly

- good timekeeping skills

- Has the ability to count and measure accurately.


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Organizational Structure

Job Description & Duties

I. Machine washers

Weigh laundry and place it in huge washing machines.

Machine washers control the machine settings for each kind

of material. This includes setting the proper temperature,

washing speed and water and suds level and adding the right

amount of bleaches and rinses. After the laundry is washedand rinsed,

II. Counter clerk

Received laundries from customers, give back clean laundry,

scheduling the date of pick-up and delivery with the

customers, and billing.

III. Bookkeeper

Analyzing and recording the transaction and presenting the

reports on time.

III. Markers or sorters tag

Mark the laundries so that they can be returned to the

appropriate customer. They usually remove loose buttons and

mark items that need to be mended.

ManagerOwner and Bookkeeper

Route workerpick up,deliver,collect

Inspector/Supervisor Counter Clerk

Machinewashers (2)

Sorter tags and washer

ExtractorOperator(2)

extractor operator, Finishes

clothes (fold and press ,iron)


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IV. Extractor operators

Place it in extractors, which spin most of the water out of

it. The laundry then goes to tumbler operators who put it

in drying machines that tumble it dry. Some items, such as

blankets and rugs, may be hung in heated rooms to dry.

V. Inspector

Check the finished laundry. If it needs rewashing or

repressing, he sends it back to the proper department. He

sends some pieces to menders, who do repairs by hand or

machine. Assemblers collect all the items belonging to each

customer. Finally, baggers or bundle wrappers place the

laundry in bags or bundles and attach invoices, which

indicate how much money the customer owes.

VI. Finishers

Fold and press the clean, dry laundry. When requested, they

press. They also may just fold and stack. Other finishers

work on shirts, ruffled curtains, blankets, or other items

that require special pressing and finishing. To get

professional results, they use forms designed for certain

parts of clothing, such as shirt sleeves, shirt collars, or

the bodies of skirts. They also use hand irons to finish

certain items that cannot be done on the forms. Thefinished items are then folded or placed on hangers.

VII. Route workers

Pick up laundries at customers' homes. Market new customers

along their routes. They also deliver clean laundry, giving

invoices and collect payments.

Segregation of Duties

I. Single Duty

• Route Worker

• Bookkeeper-Owner

II. Duties may be desegregated


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• Counter Clerk and the Inspector

• Markers or sorters tag and Machine washers (could be

same person)

• Extractor operator and the Finisher(could be same

person)

Management Style

I. Hiring Process

The applicants are required to submit their resume on the

position that they are interested to apply for. The management

will immediately evaluate and sort those applicants. And whoever

passed in the next stage will be informed by means of a message

on mobile phones. Each of them will undergo a brief interview topersonally determine if they are fit physically and mentally to

the position they were applying for and not only that but also

to evaluate if they really have the skill and ability to stay at

the business. And those who successfully overcome the process

shall submit their requirements for legal purpose employment.

II. Safe Working Environment

Safe working environment keeps the employees free from any

hazards and it complies with the law providing safeties

especially to the business operated. There are safety

precautions that should be apply, employees are segregated based

on their assigned jobs. They are required to wear gloves and

mask during the laundry process to avoid from skin irritations.

They are allowed to wear comfortable dress attire so that it

would not be hard for them to move freely. Personal hygiene is

appropriate to avoid disease or any illness, especially for

chemicals that contains strong solution.

There is specific baggage area for the employees where they can

place their bags or things to it. Their things will be check bythe assigned personnel or the owner before and after working

hours to avoid thief or any misappropriation of assets.

III. Training

Training is essential for the success of a business. Laundry

business requires training for its employees, especially it is


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in need of due care, as clothes one the basic needs of every

individual. Before being hired, employees will undergo some sort

of trainings for laundry process to evaluate if they have the

capabilities required for the position, and to ensure that they

will know how to properly do their jobs to give the customer the

satisfactions they are looking for. They will be evaluated as

necessary to test their working knowledge and improvements.

The PowerClean Chemicals Institute (PCLi) is our choice to be

the supplier of our laundry chemicals and they also offer

laundry seminar not only in Luzon but also to other regions in

the Philippines. We chose them because the lectures are based

from actual experience of running a laundry shop. They have wide

coverage of topics which covers the Business Management such as

Financial Aspect, Taxation, Marketing, Manpower, Machine and the

like. They provide continuous assistance, demo of laundrychemicals and advice of laundry operations and management even

after the seminar. The speakers are experts in Laundry Business

in which they already trained more than 1,300 Laundry owners.

Affordable price of ₱1,500 each person for early registrants of

laundry shop session. They also continuously improve their

training facility with free wifi access.

The owner should understand his choice of employees and time

invested to train them results in a direct reflection in his

marketing efforts and money spent on those efforts. All of theowner’s best intentions to provide a clean, well equipped,

multi-service, and attractive store to his customers will be

wasted if there are any employees who do not provide to his

customers the level of service, clean appearance, and customer

friendly attitude they expect and his deserve for his

investment.

At all times, the owner should remind his employees that their

top priority is their customer’s interests. From welcoming the

customers to the shop, to keeping the machines, and floorsclean, keeping bathrooms clean, and properly supplied, taking in

Wash-Dry-and Fold and Pressing, peacefully resolving customer

issues and complaints, and having that all important good

attitude. Monitor also the employees closely and fix any

employee problems immediately.


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Motivating & Rewarding Employees

1. Recognize and appreciate about the good things employees

do. They will do less negative and will strive to do more

of the positive things the owner is recognizing. It is far

easier to lead people to improved performances by thankingthem when they do it right than giving them grief when they

do it wrong.

2.

Take a moment to celebrate like having a party. . It is too

easy to get so caught up in the daily struggle that you

never stop to recognize the good work you and your

attendants do.

3.

Praise and recognize the star performers. Some of your

recognition budget should certainly go toward spotlighting

role model performances and role model employees. This

makes them feel good, encouraging them to stay on board andkeep trying hard. And it gives everyone a bit of

inspiration and a clearer idea of what you want employees

to shoot for.

4. Recognize good effort, not just results. When employees

have had a tough week, throw a mini-party for them. Bring

in some pizza, a cheesecake or whatever inspires the owner

and share it with the team. Or try writing a personal

thank-you card for each attendant – perhaps picking out a

different design for each and having some fun recognizing

individuals in your selection.

Personnel No. Min.Wage/ Working Monthly Total

Day Days Gross Pay Deductions Net Monthly Pay

ER EE ER EE ER EE

Inspector/Supervisor 1 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 6,474.34

Route Worker 1 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 6,474.34

Exctractor Operator 2 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 12,948.68

Machine Washers 2 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 12,948.68

TOTAL 27,872.00 2,102.80 1,017.20 400.00 400.00 557.44 557.44 1,974.64 38,846.04

TOTAL PER ANNUM 334,464.00 25,233.60 12,206.40 4,800.00 4,800.00 6,689.28 6,689.28 23,695.68 466,152.48

Employer's Contribution 36,722.88

Employee's Contribution 23,695.68

SSS Premium PhilHealth Premium PAG-IBIG Premium

PAYROLL SCHEDULE (FIXED RATE)

DEDUCTIONS


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CHAPTER V

FINANCIAL ASPECT

The purpose of this chapter is to project how much startup

capital is needed, sources of capital, return on investments andother financial considerations.

Considerations

1. The owner shall invest P 500,000.00 in the business as

shown in the next page, which approximates the total pre-

operating expenses.

2. A service rendered is on cash basis.

3. The equipment and leasehold improvements are to be

depreciated on a straight-line basis.4. For simplicity, all employees are presumed to be single

and that they have no dependents for purposes of

computing the withholding tax.

5.

Income tax is computed using the tabular tax rate for

individuals provided by the National Internal Revenue

Code.

6.

There are no other current liabilities aside from the

employee benefits and income tax since the entity pays

its obligations before the end of the year.

7.

Owner/Manager will withdraw instead of salary.


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89,580.00

75,980.00

165,560.00

10,000.00

6,000.00

3,500.00

1,095.00

11,879.50 32,474.50

150,000.00

Leasehold Improvements 11,500.00

Furnitures and Fixtures 18,500.00

3,000.00 2,500.00 5,500.00

199.00

2,000.00

90.00

4,000.00

100.00

2,250.00

9,000.00

Ballpens 60.00

500.00

150.00

200.00

1,500.00

1,600.00

1,687.50

2,600.00

3,540.00

100.00

739.75

1,310.00 31,626.25

19,500.00 7,600.00

10,000.00

3,280.00

Paint Oil and Grease Remover 5,000.00 45,380.00

Duties and Licenses 5,842.00

Rent 30,000.00

TOTAL 496,382.75

2 months advance 1 month deposit

Plastic Bag

Sando Bags

DetergentsFabric Softener

Fabric Freshener

Liquid Bleach

Plastic Basin

Tagging paper

Scotch tape

Record Book

Order Slip

Delivery Slip

Cleaning Products

Calculator

Water Hose

Fire Extinguisher

Plastic Container (for filtration process)

1 sq.meter of Black Shade Cloth

Pre - Operating Expenses

Gloves

Laundry Basket

Dipper

Hangers

Steam Flat Iron

Computer Set

Vehicle

Multicab

Equipments

Water Tank

Exhaust fan

Weighing Scale

Machines

9kg Top Load Washing Machine with T-Drive

Washing Technology

7kg Sensor Dry Dryer with Iron Aid

Face Mask

Advertising Expenses

Leaflets and flyersTarpaulin

Supplies, etc.


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Year 1 Year 2 Year 3 Year 4 Year 5

Current AssetsCash 660,841.65 884,816.46 982,166.09 970,134.35 623,783.09

Supplies Inventories 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04

Total Current Assets 663,110.65 887,312.36 984,911.58 973,154.39 627,105.13

Non Current Assets

Equipments 348,034.50 348,034.50 348,034.50 348,034.50 348,034.50

Less: Accumulated Depreciation 50,606.46 101,212.92 151,819.38 202,425.84 253,032.30

Leasehold Improvements 11,500.00 11,500.00 11,500.00 11,500.00 11,500.00


Furnitures and Fixtures 18,500.00 18,500.00 18,500.00 18,500.00 18,500.00


Total Non Current Assets PHP 321,428.04 PHP 264,821.58 PHP 208,215.12 PHP 151,608.66 PHP 95,002.20

Total assets PHP 984,538.69 PHP 1,152,133.94 PHP 1,193,126.70 PHP 1,124,763.05 PHP 722,107.33

Current Liabilities

Due to SSS 4,680.00 4,680.00 4,680.00 4,680.00 4,680.00

Due to Philhealth 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00

Due to PAG-IBIG 1,672.32 1,672.32 1,672.32 1,672.32 1,672.32 Income Tax Payable 178,435.64 232,529.88 286,127.25 345,084.35 410,577.16

Total Current Liabilities PHP 185,987.96 PHP 240,082.20 PHP 293,679.57 PHP 352,636.67 PHP 418,129.48

Non Current Liabilities

Loan Payable 0.00 0.00 0.00 0.00 0.00

Total Liabilities PHP 185,987.96 PHP 240,082.20 PHP 293,679.57 PHP 352,636.67 PHP 418,129.48

Owner's Equity

Capital 798,550.73 912,051.73 899,447.14 772,126.38 303,977.85

Total Liabilities and Owner's Equity PHP 984,538.69 PHP 1,152,133.94 PHP 1,193,126.70 PHP 1,124,763.05 PHP 722,107.33

PROJECTED FIVE YEAR COMPARATIVE BALANCE SHEET

Lovebada Bango

LIABILITIES & OWNER'S EQUITY

ASSETS


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Inventory, Jan 0 2,269.00 2,495.90 2,745.49 3,020.04

Purchases 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86

Freight-in 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04

Total Purchases 47,649.00 52,413.90 57,655.29 63,420.82 69,762.90

Purchase Discounts 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04

Net Purchases 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86

Cost of Inventoy Available for Use 45,380.00 52,187.00 57,405.70 63,146.27 69,460.90

Less: Inventory, Dec 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04

Cost of Inventoy Used 43,111.00 49,691.10 54,660.21 60,126.23 66,138.85

334,464.00 334,464.00 334,464.00 334,464.00 334,464.00

Total Depreciation of Direct Equipment 15,393.15 15,393.15 15,393.15 15,393.15 15,393.15

392,968.15 399,548.25 404,517.36 409,983.38 415,996.00

Cost of Services Provided

TOTAL COST OF SERVICES

Salaries of Direct Workers


Service Revenues PHP 1,648,920.00 PHP 1,813,812.00 PHP 1,995,193.20 PHP 2,194,712.52 PHP 2,414,183.77

Less: Discounts 49,467.60 54,414.36 59,855.80 65,841.38 72,425.51

Net Service Revenue PHP 1,599,452.40 PHP 1,759,397.64 PHP 1,935,337.40 PHP 2,128,871.14 PHP 2,341,758.26

Less: Cost of Services 392,968.15 399,548.25 404,517.36 409,983.38 415,996.00

Gross Profit PHP 1,206,484.25 PHP 1,359,849.39 PHP 1,530,820.04 PHP 1,718,887.76 PHP 1,925,762.25

Less: Expenses

Salaries & Wages 167,232.00 167,232.00 167,232.00 167,232.00 167,232.00

Depreciation - Equipment 35,213.31 35,213.31 35,213.31 35,213.31 35,213.31

Depreciation - Leasehold improvements 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00

Depreciation - Furnitures and Fixtures 3,700.00 3,700.00 3,700.00 3,700.00 3,700.00

Rent 140,000.00 120,000.00 120,000.00 120,000.00 120,000.00

Supplies 31,626.25 34,788.88 38,267.76 42,094.54 46,303.99

Advertising 5,500.00 3,000.00 3,000.00 3,000.00 1,000.00 SSS contribution 37,850.40 37,850.40 37,850.40 37,850.40 37,850.40

PhilHealth Contribution 7,200.00 7,200.00 7,200.00 7,200.00 7,200.00

PAG-IBIG Contribution 10,033.92 10,033.92 10,033.92 10,033.92 10,033.92

Duties and Licenses 5,842.00 2,500.00 2,500.00 2,500.00 2,500.00

Utilities 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00

Repairs and Maintenance 5,000.00 12,000.00 12,000.00 12,000.00 12,000.00

Total General and Administrative Exp 489,497.88 473,818.51 477,297.39 481,124.17 483,333.62

Income Before Tax PHP 716,986.37 PHP 886,030.89 PHP 1,053,522.65 PHP 1,237,763.59 PHP 1,442,428.63

Income Tax (Tabular) PHP 178,435.64 232,529.88 286,127.25 345,084.35 410,577.16

Income After Tax PHP 538,550.73 PHP 653,501.00 PHP 767,395.40 PHP 892,679.24 PHP 1,031,851.47

PROJECTED FIVE YEAR COMPARATIVE INCOME STATEMENT

Lovebada Bango


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Quantity

Cost/Equipment/F

urniture Total Acquisition Cost Scrap Value Est. Useful Life Annual Dep'n

9kg Top Load Washing Machine with T-

Drive Washing Technology 4 22,395.00 89,580.00 8,958.00 10 8,062.20

7kg Sensor Dry Dryer with Iron Aid 4 18,995.00 75,980.00 7,598.00 10 6,838.20

Steam Flat Iron 1 1,095.00 1,095.00 109.50 2 492.75

Direct Equipment - Overhead 15,393.15

Multicab 1 150,000.00 150,000.00 15,000.00 5 27,000.00

Water Tank 1 10,000.00 10,000.00 1,000.00 5 1,800.00

Computer Package 1 11,879.50 11,879.50 1,187.95 5 2,138.31

Weighing Scale 1 3,500.00 3,500.00 350.00 2 1,575.00

Exhaust Fan 1 6,000.00 6,000.00 600.00 2 2,700.00

Total Depreciation Equipments 348,034.50 35,213.31

Furnitures and Fixtures 18,500.00 18,500.00 5 3,700.00

Leasehold Improvements 11,500.00 11,500.00 5 2,300.00 378,034.50 56,606.46

Equipments

Depreciation Table

Lovebada Bango

TOTAL

Description Consumption per day (Php) In One Year Total

1. Gasoline 100 312 31,200.00

2. Telephone 0.191362 312 59.70

3. Electricity 3.18936 312 995.08

4. Water 0.486 312 151.63

5. Computer 10.04648 312 3,134.50

35,540.92

Breakdown of Utilities (Indirect)


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Cash Provided/Used by Operating Activities

Cash Receipts from Sales & Services PHP 1,599,452.40 PHP 1,759,397.64 PHP 1,935,337.40 PHP 2,128,871.14 PHP 2,341,758.26

Purchase of Inventory 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86

Payment of Advertising Fee 5,500.00 3,000.00 3,000.00 3,000.00 1,000.00

Payment of Utilities Expense 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00

Payment of supplies 31,626.25 34,788.88 38,267.76 42,094.54 46,303.99

Payment of Rent 140,000.00 120,000.00 120,000.00 120,000.00 120,000.00

Payment of Repairs and Maintenance 5,000.00 12,000.00 12,000.00 12,000.00 12,000.00

Payment of Employee Salaries / Wages 466,152.48 466,152.48 466,152.48 466,152.48 466,152.48

SSS, Philhealth & PAG-IBIG Premium (ER&EE share) 83,075.52 90,627.84 90,627.84 90,627.84 90,627.84

Payment of Duties and Licences 5,842.00 2,500.00 2,500.00 2,500.00 2,500.00

Remittance of Withholding Tax - - - - -

Payment of Income Tax 0.00 178,435.64 232,529.88 286,127.25 345,084.35

Net Cash Provided by Operating Activities 778,876.15 763,974.81 877,349.64 1,007,968.26 1,153,648.74

Cash Provided/Used from Investing Activities

Payment to acquire equipment 366,534.50 0.00 0.00 0.00 0.00

Payment for leasehold improvements 11,500.00 0.00 0.00 0.00 0.00

Net Cash Used in Investing Activities 378,034.50 0.00 0.00 0.00 0.00

Cash Provided from Financing Activities

Cash received as investment by owner 500,000.00 0.00 0.00 0.00 0.00Payment for withdrawals by owner 240,000.00 540,000.00 780,000.00 1,020,000.00 1,500,000.00

Net Cash Provided by Financing Activities 260,000.00 -540,000.00 -780,000.00 -1,020,000.00 -1,500,000.00

Net Cash Inflow (Outflow) 660,841.65 223,974.81 97,349.64 -12,031.74 -346,351.26

Add: Beginning Cash Balance - PHP 660,841.65 884,816.46 982,166.09 970,134.35

Ending Cash Balance PHP 660,841.65 PHP 884,816.46 PHP 982,166.09 PHP 970,134.35 PHP 623,783.09

PROJECTED STATEMENT OF CASH FLOWS


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1 2 3 4 5

A, Capital A, Capital A, Capital A, Capital A, CapitalBeginning Balance PHP 0.00 PHP 798,550.73 PHP 912,051.73 PHP 899,447.14 PHP 772,126.38

Add: Investment 500,000.00 0.00 0.00 0.00 0.00

Net Income 538,550.73 653,501.00 767,395.40 892,679.24 1,031,851.47

Total PHP 1,038,550.73 PHP 1,452,051.73 PHP 1,679,447.14 PHP 1,792,126.38 PHP 1,803,977.85

Less: Withdrawals 240,000.00 540,000.00 780,000.00 1,020,000.00 1,500,000.00

Ending Capital Balance PHP 798,550.73 PHP 912,051.73 PHP 899,447.14 PHP 772,126.38 PHP 303,977.85

Lovebada BangoPROJECTED STATEMENT OF CHANGES in OWNER'S EQUITY

YEAR

Year 1 Year 2 Year 3 Year4 Year 5

Net Income 538,550.73 653,501.00 767,395.40 892,679.24 1,031,851.47

Divided by: Average Investment 984,538.69 1,068,336.31 1,172,630.32 1,158,944.88 923,435.19

ROI Percentage 0.547 0.612 0.654 0.770 1.117

Year

Net Operating Cash

Flows

Cummulative Cash

Flows

1 778,876.15 778,876.152 763,974.81 1,542,850.96

3 877,349.64 2,420,200.59

4 1,007,968.26 3,428,168.85

5 1,153,648.74 4,581,817.59

500,000.00

0.67

In 8 months

Computation:

FINANCIAL STATEMENT ANALYSIS

Return On Investment

Payback Period (Uneven Cash Flows)


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Chapter VI

SOCIO ECONOMIC-STUDY AND ENVIRONMENTAL IMPACT

This chapter in general provides information about the

socio economic study of the business as well as its

environmental impact. This will tackle the benefits that can be

rendered to the customers, the owners and the staff and how to

keep the environment safe from the chemicals that are main

components of the laundry business.

Socio-Economic

The proposed laundry business, “Lovebada Bango” will bring

satisfaction to customers, who are looking for a laundry shop

that will cater good services of cleaning their clothes at a

reasonable price. The business will help the customers orindividuals to maximize their time for other work and serve

comfort to the customers.

Contribution to the Economy

The proposed business will benefit the economy through

providing employment to every individual especially within the

resident covered by the study. This will give the hired

employees and their families their source of income for their

living needs. This business will support local workers. It will

also promote the business and also contribute to the competition

which will lower the price of the product but will maintain the

quality of the products.

Contribution to the Government

As Filipino citizens, the business owners will pay their

tax liabilities mandated by the law. Tax will help the

government generate funds for the improvement of public service

and government projects.

Contribution to the Society

Lovebada Bango business will keep this town marketable to

attract more investors that will help the community for its

improvements and modernization, which, in turn leads to money

placed directly into the community.


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Environmental Impact

Environmental impact of cleaning agents is the consequences

of chemicals contained in the products. We can't deny the fact

that our environment is the first affected by what we are doing

especially when it involves upgrading our works through the helpof technology. Simple things like using a car as a means of

transportation can contribute or rather give impact to our

environment.

Laundry business like Love Vada Bango, perhaps gives an

impact to our environment. The machines that we used emit

greenhouse gasses (CO2) that add effect to what we are

experiencing nowadays, the "global warming".

Another thing is the used of detergents and bleaches inwashing garments. Although the place is not near the river in

which fishes could die, detergents may still affect our

environment. Like lots of fillers used in powder detergents are

poured in drains causing wastage of useful products like common

salt / washing soda and choking of drain / sewerage system.

Components of detergents like sodium sulphate can wreak havoc on

septic system. Synthetic detergents and our laundry practices

are contributing to our ground level water pollution.

The laundry business is aware of its harm to the

environment from the chemical substance that will be used as

stated above. Since the proposed business have to make sure that

it will not cause any harm to the people and environment as

well, it has to make sure to treat every water it throws.

The water treatment will use filtration system for removal

of contaminants by chemical and physical bonding. The proposed

business will make this process cost friendly and more

effective.


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Chapter VII

CONCLUSION AND RECOMMENDATION

The market study determined the demand for service through

research on the residents on the particular area from Brgy.

Sikatuna, Tandang Sora and Humabon. The study conducted revealed

the demand for the service and enabled to come up with an

efficient marketing program that will support the viability of

the business in its first stages of operation and expected to

last in the long run.

Generally, Lovebada Bango Laundry Shop is seen to be

feasible upon studying its location, market demand and the

factors affecting the market. It is recommended that an

extensive study for other aspects of the business feasibility is

conducted and the execution of the marketing program developed

accords to what really satisfies the market.

feasibility study-laundry services (1)

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